DBRS Morningstar Updates Pari Passu Index for Loans in CMBS 2.0

DBRS, Inc. (DBRS Morningstar) updated its Pari Passu Index for loans in transactions issued after 2010. A portfolio of these loans has been created and is shared on DBRS Viewpoint (viewpoint.dbrsmorningstar.com), an interactive commercial mortgage-backed security (CMBS) platform that will instantly allow users to see their exposure to pari passu loans.

The volume of pari passu loans contributed to CMBS transactions had been increasing since 2009, reaching its peak in 2017 with $30.2 billion (22.4% of total issuance) and 632 pieces. In 2018, the amount of pari passu loans decreased compared with the previous year for the first time. However, the trend of having pari passu loans continued as the amount of pari passu loans increased again in 2019. In 2020 so far, 287 pari passu pieces with $12.3 billion have been securitized in CMBS transactions, contributing 27.7% of the total issuance amount. Although the total issuance volume is low in 2020, the rate of pari passu contribution is the highest in CMBS 2.0 history.

DBRS Morningstar expects to update this Pari Passu Index again in January 2021 and will also be updating the shared portfolio in DBRS Viewpoint as more CMBS transactions come to market.

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The report is available at www.dbrsmorningstar.com.

For more information on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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